(Reuters) - The UK has agreed to fully honor its financial commitments to the European Union, assuming liabilities worth up to 100 billion euros ($118.44 billion), as part of its agreement with the European Union on the Brexit divorce bill, the Financial Times reported on Tuesday.

The UK's net payments on the liabilities, discharged over many decades, could fall to less than half that amount, FT said, citing several diplomats familiar with the talks. on.ft.com/2zwsRm3

Britain and the EU have reached agreement on a Brexit divorce bill of between 45 billion and 55 billion euros, the Daily Telegraph newspaper reported earlier on Tuesday.

The newspaper also said that an agreement in principle has now been reached over the EU’s demand for a 60 billion-euro financial settlement.

The European Commission declined to comment on the FT report.

Reporting by Abinaya Vijayaraghavan in Bengaluru, editing by Larry King